Evergreen Clause

One company buys out another and immediately raise rates by $10 a month. Then they send out a mandatory contreact renewal which says you have to sign a 36 month minimum contract.

"Term. The initial term of this agreement shall start on the date of this agreement and continue for 36 months thereafter, This agreement shall automatically renew for successive 36 month terms unless either party gives written notice of termination to the other at least 60 days before the end of tyhe then current term. Any notice of termination under this agreement by customer shall be void unless sent via certified mail, return receipt requested, and actually received by company."

Sounds like a pretty much standard contract term for the alarm industry with the except of the rather short (60 days) prior written notice to cancel. I would have just considered it business as usual if received from Brinks or ADT or P-1. This was from my dumpster service. They should be getting their dumpster the "F" off my property by end of business tommorrow.

Bob La Londe The guy who decides who we do business with.

The Security Consultant PO Box 5720 Yuma, Az 85366

(928) 782-9765 ofc (928) 782-7873 fax alarm snipped-for-privacy@hotmail.com

Contractors License Numbers ROC103040 & ROC103047

Reply to
Bob La Londe
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Reply to
Bob La Londe

Wonder if the old dumpster would fit IN the new dumpster?

Reply to
Matt Ion

I thought about it. I've got a torch in the shop. Cut it in quarters and it should fit just fine.

I like the color of the new one better anyway. LOL. Doesn't look like a big blue pimple on the front of my tan/cream colored shop.

-- Bob La Londe The guy who decides who we do business with.

The Security Consultant PO Box 5720 Yuma, Az 85366

(928) 782-9765 ofc (928) 782-7873 fax alarm snipped-for-privacy@hotmail.com

Contractors License Numbers ROC103040 & ROC103047

Reply to
Bob La Londe

RHC: Well, I don't want to restart the endless argument for or against long term contracts here, but if this is an acceptable way of doing business for the alarm industry, then why isn't it acceptable for any other business ? I hope you see the irony here; it's not meant as any sort of criticism in response to your post. I am simply pointing out that if this sort of dreadful contractual arrangement is OK for alarm companies to engage in, then it should also be acceptable for other industries to try to "guarantee their revenue stream" as well.

I do believe that alarmco contracts usually give you the option to totally opt out of the contract if they raise the rates beyond the cost of living clause normally included in the contract. In this sense, they are certainly slightly fairer than this companies contract.

Reply to
tourman

In case you haven't been paying attention to a.s.a for the last couple months... I don't believe this IS considered an acceptable way of doing business in the alarm industry, either. At least not in these parts.

It's not the long-term contracts that are at issue, though - it's the automatic-renewal-for-another-long-term-unless-you-opt-out-with-lots-of-lead-time clause that's got people riled.

With my cel provider, I have the option to sign up for service three years at a time, and in exchange I get a new phone for free or cheap (shorter contracts are also available, with lower subsidies on new phones). Yet when my contract is up, it's not automatically renewed for me - I just keep going along at the same monthly rate, on the same airtime plan, until such time as I decide to renew or cancel. And I can cancel anytime I want after the contract is up, no penalties, no keep-paying-until-the-end-of-the-month.

Again, the long-term contract itself is not the problem - it's the fact that customers are given only a narrow window to opt out, and if they don't, they're stuck for another long term.

In fact, this type of contract would probably be illegal here in BC, where a cable provider was smacked down several years ago for a similar type of "negative-option" billing: they would add new channels and service tiers without asking whether customers wanted them, and then after a short period (60-90 days), would start charging for them, unless the customer went out of his way to say he DIDN'T want them.

Reply to
Matt Ion

automatic-renewal-for-another-long-term-unless-you-opt-out-with-lots-of-lead-time

RHC: Yes, there was a national alarm company here that used to do that as well (VSN Security). They had a clause that unless you advised them in writing a full three months in advance of the end of the five year term, the contract would renew for another term of five years. Amazingly enough, no one complained unless they happened to be ending up on the dirty end of that stick ! Seems the average consumer just doesn't shop carefully enough...

Also, the local cable company Rogers tried "negative option marketing" a few years ago, and the hue and cry from the public forced them to retract their approach.

At least with the cell phone providers you actually get something tangible for the disadvantage of signing a long term contract.

Reply to
tourman

business tommorrow.

That was one of the nicest dumpsters I ever stayed in. Looks like I'm homeless again!

Reply to
Just Looking

You have to sign a long term contract for dumpster service?

Reply to
Crash Gordon

Nope. I made two phone calls and cleared it all up. One to C&D (the competition), and one to Allied telling them to get their junk off my property.

Reply to
Bob La Londe

On Nov 15, 1:34=EF=BF=BDpm, Matt Ion wrote: ?

a=EF=BF=BDd-time

I agree. Long term contracts are never an issue with my clients. Where the problems occur is from those who totally enforce them, not letting people off the hook for any reason what-so-ever. And ..... the automatic renewal.

As I've metioned before, here in NY, we are required to notify clients with sufficient advance warning that their contracts are being renewed. If we raise the monthly fee above a certain amount they can opt out or I must recind the increase. And I always send a cancelation acknowledgements, certified, returnt receipt as notice, when someone terminates or is terminated. In all the years I've been in business, I've only once (just recently) enforced a contract, which the client offered to do, anyway.

Yeah but obviously, in the alarm industy, we just can't let contracts run out due to the limitaion of liability etc etc.

Reply to
Jim

Fair enough, but why does it have to be under contract? With my cel service, it doesn't just STOP WORKING when the contract is up - everything still works exactly as before, I'm just no longer obligated to keep my service for a set amount of time.

Reply to
Matt Ion

No, he rides shotgun on the trash truck to get the employee discount.

Reply to
Roland Moore

RHC: I believe that is the way most contracts are generally applied. At least in the case of ADT, once the contract is up, it goes monthly. I know that all of the active ADT contracts I "takeover" are that way anyway. Could be there are other large nationals that don't apply things this way though.

I doubt there is any "limitation of liability" associated with a month to month alarm contract, just an exposure to having the customer being "in the driver's seat" for the first time. The terms of the contract still apply, just the term is different.

Reply to
tourman

RHC: Yeah, nothing has changed in the way I feel about how this long term contract business is applied in our industry. I guess I just don't get as riled up as I used to anymore. If someone decides to make that kind of disadvantageous decision for themselves, then so be it ! A fool and his money are soon parted....

But a long term contract for a dumpster ??? Cripes !!...doesn't that beat all.....:((

Reply to
tourman

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